What is your view on the growing gap between CEO compensation and entry-level salaries in Indian IT?
Former CEO at HCL Technologies
There are two separate conversations. On entry-level salaries, the starting salary is low partly because Indian graduates are not immediately deployable. The organization has to invest six to twelve months in skilling them before they become productive. So the starting salary is effectively an investment salary. But if you choose the right vertical, a rare and high-growth technology area rather than testing or legacy coding, the salary acceleration can be significant. A crore rupee salary within ten years is not unusual in the right track. On CEO compensation, my question is not whether the number is high. My question is whether the compensation is linked to transformation actually delivered. If a CEO moves a company from X dollars in valuation to 100X, the compensation is fair. If transformation never happens and employees and shareholders do not gain, then the compensation is not justified. The logic is the same as a startup founder who makes money only if the company succeeds.
This answer is part of a full interview with Vineet Nayar, Former CEO at HCL Technologies.
Found this insight valuable? Share it with your network to help others learn from Vineet Nayar's experience.
Cite This Answer
Use this answer in your research, article, or academic work